ML20059M089
| ML20059M089 | |
| Person / Time | |
|---|---|
| Site: | Claiborne |
| Issue date: | 11/12/1993 |
| From: | Leroy P LOUISIANA ENERGY SERVICES |
| To: | Jim Hickey NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| References | |
| NUDOCS 9311180146 | |
| Download: ML20059M089 (27) | |
Text
-
LOMSANA s,01,,< eeoOO4
{ I{
Charlone, NC 28201 1004 November 12,1993 Mr. John W. N. Hickey, Chief Enrichment Branch Division of Fuel Cycle Safety 4
and Safeguards, NMSS U.S. Nuclear Regulatory Commission Washington, D.C. 20555 1
Subject:
Docket No.: 70-3070 Louisiana Energy Services i
Claiborne Enrichment Center Licensing Application Revision File: 6046-00-2001.01
Dear Mr. Hickey:
Enclosed are twenty three copies of the eighth revision to the License Application (LA).
Instructions for making the revisions are detailed in the enclosed Push-Pull Instructions.
The revisions are being made in partial response to your letter to Louisiana Energy Services (LES) dated November 10,1993, Enclosure 1, Comment 8. Specifically, License Application, Exhibit 1, Appendixes A and C have been updated to include the following:
"No withdrawal from the Fund can exceed 20 percent of the outstanding balance 'of the Fund unless NRC approvalis attached." The remaining comments from your letter dated November 10,1993, will be resolved by revisions to the Safety Analysis Report and Proposed License Conditions that will be submitted by December 3,1993.
Please call me at (704) 382-2834 if there are any questions concerning this.
Sincerely, i
Peter G. LeRoy Licensing Manager PGl>N105.113 Enclosures (sD 9311100146 931112 I
PDR ADOCK 07003070 C
PDR t;
a
I.l November 12,1993 Mr. John W. N. Hickey, Chief Page 2 xc:
(1 copy of enclosures)
Mr. Morton B. Margulies, Esq., Chairman Administrative Judge Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission i
Washington, D.C. 20555 i
Ms. Diane Curran, Esquire Harmon, Curran, Gallagher, & Spielberg
'i 2001 S Street, NW, Suite 430 Washington, DC -20009-1125 l
Mr. R. Wascom i
Office of Air Quality and Radiation Protection j
' Louisiana Department of Environmental Quality l
PO Box 82135 l
Baton Rouge, Iouisiana 70884-2135 Ms. Nathalie Walker Sierra Club Lepl Defense Fund 400 Magazine. Street Suite 401 New Orienns, LA 70130 l
l
....F
l F
Page 1 of 1 Louisiana Energy Services License Application Push-Pull Instructions i
Revision 8, November 12, 1993 Remove Insert
" List of Effective Pages"
" List Of Effective Pages"
- pages 1-2
- pages 1-2
" Exhibit I APPENDIX A"
" Exhibit I APPENDIX A"
- Title Page
- pages A-1 through A-8
- pages A-1 through A-8
" Exhibit I APPENDIX B"
" Exhibit I APPENDIX B" 1
- Title Page
- pages B-1 through B-5
- pages B-1 through B-4
" Exhibit I APPENDIX C"
" Exhibit I APPENDIX C" i
- Title Page
- pages C-1 through C-9
- pages C-1 through C-8 e
l i
l
\\
Notes:
1)
Each page afected by this resision has the month and year of the revision printed in the lower right harai corner of the page.
2)
All changes or additions to text of each document are indicated by a sidebar ( ) ) in the right hand margin.
in the case of deletion of text, the sidebar appears in the right hand margin with a perpendicular line l
towards the text ( d ) indicating where material was deleted.
u4 i
)
e e
irOETISIANA ENERGY SERVICES APPLICATION FOR LICENSES I
LIST OF EFFE:TIVE PAGES I
l i
Pace / Table /Ficure Number
- Revision Number, Date of Revision l
.i APPLICATION FOR LICENSE-p1 6, 07/30/93 l
p2 6, 07/30/93 i
p3 6, 07/30/93 p4 6, 07/30/93 p5 6, 07/30/93 p6 6, 07/30/93 l
p7 6, 07/30/93 i
p8 6, 07/30/93 i
AFFIRMATION 0, 01/29/91 l
i i
SEAL 0, 01/29/91 EXHIBIT I j
p EX l-1 7, 10/12/93 i
p EX l-2 7, 10/12/93 p EX l-3 7, 10/12/93 p EX 1-3 7, 10/12/93 p EX l-4 7, 10/12/93 p EX l-5 7, 10/12/93 p EX l-6 7, 10/12/93 j
p EX 1-7 7, 10/12/93 l
p EX l-8 7, 10/12/93 q
p EX l-9 7, 10/12/93 EXHIBIT I APPENDIX A p A-1 8, 11/12/93 p A-2 8, 11/12/93 p A-3 8, 11/12/93 1
p A-4 8, 11/12/93 p A-5 8, 11/12/93 p A-6 8, 11/12/93 p A-7 8, 11/12/93 p A-8 8, 11/12/93 louisiana Energy Services Page 1 of 2 November 12,1993 License Application Revision 8
LOUISIANA ENERGY SERVICES APPLICATION FOR LICENSES LIST OF EFFECTIVE PAGES EXHIBIT I APPENDIX B p B-1 8, 11/12/93 p B-2 8, 11/12/93 p B-3 8, 11/12/93 p B-4 8, 11/12/93 p B-5 8, 11/12/93 EXHIBIT I APPENDIX C p C-1 8, 11/12/93 p C-2 8, 11/12/93 p C-3 8, 11/12/93 p C-4 8, 11/12/93 p C-5 8, 11/12/93 p C-6 8, 11/12/93 p C-7 8, 11/12/93 p C-8 8, 11/12/93 p C-9 8, 11/12/93
- NOTE:
A
=
Attachment Page p
=
F Figure
=
Reference R
=
Table T
=
l louisiana Energy Services Page 2 of 2 November 12,1993 License Application Revision 8
- i i
EXHIBIT I-
- /~
APPENDIX A t
. (
i t
I t
?,
i LOUISIANA ENERGY SERVICES CLAIBORNE ENRICHMENT CENTER I
i FORM OF EXTERNAL TRUST AGREEMENT i
I i
C s.
I l
4 f
f E
4 4
4 6
Louisiana Energy Services A-1 November 12,1993 i
License Application Revision 8 i
Exhibit I. Appendix A
- l t
?
J TRUST AGREEMENT This TRUST AGREEMENT, is entered into as of [date] by and between Louisiana Energy Services, a partnership, herein referred to as the " Grantor," and [name and address of a national bank or other Trustee acceptable to the U.S. Nuclear Regulatory Commission j
(NRC)], the " Trustee." This Agreement shall become effective upon Louisiana Energy Services taking possession of " source material," "special nuclear material," or " byproduct i
material" as defined in 10 CFR 40.4.
i WHEREAS, the NRC, an agency of the U.S. Government, pursuant to the Atomic j
Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has i
promulgated regulation in Title 10, Chapter I of the Code of Federal Regulations, Parts 40 l
and 70, which regulations, applicable to the Grantor, require that a holder of, or an applicant for a materials license issued pursuant to 10 CFR Parts 40 and 70, provide assurance that funds will be available when needed for required decommissioning activities.
WHEREAS, the Grantor has elected to use a trust fund, coupled with a surety bond, t
to provide such financial assurance for the facilities identified herein, such surety to decline in amount with the accumulation of funds under this trust; 1
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the 1
Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee, i
NOW, THEREFORE. the Grantor and the Trustee agree as follows:
{
Section 1. Definitions. As used in this Agreement:
y 4
(a)
The term " Grantor" means the NRC licensee who enters into this Agreement and any successors or assigns of the Grantor.
1 (b)
The term " Trustee" means the trustee who enters in to this Agreement and any l
)
successor Trustee.
Section 2. Costs of Decommissioninc. This Agreement pertains to the costs of decommissioning the materials and activities identifid in License Number [ insert license l
number] issued purst; ant to 10 CFR Parts 40 and 70.
I Louisiana Energy Services A-2 November 12,1993 License Application Revision 8 l
Exhibit 1. Appendix A
}
?
i m
y
3 Section 3. Establishment of Fand. The Grantor and the Trustee hereby establish a trust fund.
. (the Fund) for the accumulation cf funds and payment of decommissioning cost and expenses in accordance with the requirements of the NRC. The Grantor and the Trustee intend that no i
third party shall have access to the Fund except as provided herein.
Section 4. Payments Constitutine the Fund. Payments made to the Trustee for the Fund shall consist of cash, securities, or other liquid assets acceptable to the Trustee. The Fund is established initially as consisting of the propeny, which is acceptable to the Trustee, [to be]
j described in an attachment hereto. Such propeny and any other property subsequently transferred to the Trustee are referred to as the " Fund," together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement.
i The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of i
the Fund, nor any duty to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by the NRC.
Section 5. Payment for Required Activities Specified in the Plan. The Trustee shall make l
payments from the Fund to the Grantor upon presentation to the Trustee of the following:
l l
a.
A certificate duly executed by the Secretary of the Depositor attesting to the L
occurrence of the events, and in the form [to be] set forth in an attachment j
- hereto, b.
A cenificate attesting to the following conditions; (1) that decommissioning is proceeding pursuant to an NRC-approved plan.
(2) that the funds withdrawn will be expended for activities undenaken pursuant to that Plan, or will reimburse depositor for amounts already so
)
expended,and i
(3) that the NRC has been given 30 days' prior notice of Louisiana Energy Services' intent to withdraw funds from the escrow fund.
t No withdrawal from the fund can exceed 20 percent of the outstanding balance of the Fund unless NRC approval is attached.
i In the event of the Grantor's default or inability to direct decommissioning activities, the Trustee shall make payments from the fund as a duly designated successor to Grantor acceptable to the NRC shall direct, in writing, to provide for the payment of the costs of
{
required activities covered by this Agreement. The Trustee shall reimburse the Grantor or
{
other persons as may be directed by the Grantor, such successor, or other duly constituted authority, from the Fund for expenditures for required activities. In addition, the Trustee shall j
refund to the Grantor such amounts as may remain in the Fund after required j
l
)
kuisiana Energv Services A-3 November 12,1993 1
License Application Revision 8 Exhibit 1, Appendix A
^
l i
I I
decommissioning is completed and evidence of NRC consent is provided. Upon refund, such funds shall no longer constitute part of the Fund as defined herein.
l Section 6. Trust Manacement. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single Fund, without distinction between j
principal and income, in accordance with general investment policies and guidelines which the i
Grantor may communicate in vzriting to the Trustee from time to time, subject, however, to l
the provisions of this section. In investing, exchanging, sclling, and managing the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the purpose of the Fund and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, l
would use in the conduct of an enterprise of a like character and with like aims, except that:
(a)
Securities or other obligations of the Grantor, or any other owner or operator of i
the facilities, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State j
government; i
(b)
The Trustee is authorized to invest the Fund in time or demand deposits of the t
i Trustee, to the extent insured by an agency of the Federal government; and i
For a reasonable time, not to exceed 10 days, the Trustee is authorized to hold 1
(c) uninvested cash, awaiting investment or distribution, without liability for the payment of interest thereon.
i Section 7. Commineline and Investment. The Trustee is expressly authorized in its discretion.
(a)
To transfer from time to time any or all of the assets of the Fund to any l
i common, commingled, or collective trust Fund created by the Trustee in which j
the Fund is eligible to participate, subject to all of the provisions thereof, to be 4
commingled with the assets of other trusts participating therein; and (b)
To purchase shares m any mvestment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), including one that may be l
1 l
created, managed, undenvritten, or to which investment advice is rendered, or i
the shares of which are sold by the Trustee. The Trustee may vote such shares l
in its discretion.
l Section 8. Express Powers of Trustee. Without in any way limited the powers and discretion l
conferred upon the Trustte by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:
i Louisiana Energy Services A-4 November 12,1993 License Application Revision 8 Exhibit 1. Appendix A J
e a.ie a.,
aa.-
,,s.a.
a s.-.
s i
i 4
(a)
To sell, exchange, convey, transfer, or otherwise dispose of any property held j
by it, by public or private sale, as necessary for pmdent management of the Fund; l
(b)
To make, execute, acknowledge, and deliver any and all documents of transfer.
I and conveyance and any and all othe-instruments that may be necessary or appropriate to carry out the powers herein granted:
)
(c)
To register any securities held in the Fund in its own name, or in the name of a nominee, and to hold any security in bearer form or in book entry, or to combine certificates representing such securities with certificates of the same c
issue held by the Trustee in other fiduciary capacities, to reinvest interest payments and Funds from matured and redeemed instruments, to file proper
{
forms concerning securities held in the Fund in a timely fashion with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even though, when so deposited, such securities may be merged and held in bulk in the name of the nominee or such depository with other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the U.S Federal Reseive bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; (d)
To deposit any cash in the Fund in interest-bearing accounts maintained or i
savings certificates issued by the Trustee, in its separate corporate capacity, or l
in any other backing institution affiliated with the Trustee, to the extent j
insured by an agency of the Federal government; and (e)
To compromise or otherwise adjust all claims in favor of or against the Fund.
j 1
Section 9. Taxes and Expenses. All taxes of any kind that may be assessed or levied against I
or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid.
from the Fund. All other expenses incurred by the Trustee in connection with the administration of this Trust, including fees for legal nrvices rendered to the Trustee, the 2
compensation of the Trustee to the extent not paid directly by the Grantor, and all other l
proper charges and disbursements of the Trustee shall be paid from the Fund.
Section 10. Annual Valuation. After payment has been made into this trust fund, the Trustee i
shall annually, at least 30 days before the anniversary date of receipt of payment into the trust l
fund, furnish to the Grantor and to the NRC a statement confirming the value of the Trust.
Any securities in the Fund shall be valued at market value as of no more than 60 days before the anniversary date of the establishment of the Fund. The failure of the Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and the NRC shall constitute a conclusively binding assent by the Grantor, barring the Louisiana Energy Services
.A-5 November 12,1%.s License Application
%sion 8 Exhibit I, Appendix A
1 j
l Grantor from asserting any claims or liability against the Trustee with respect to the matter disclosed in the statement.
Section 11. Advice of Counsel. The Trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent permitted by law, in acting on the advise of counsel.
{
Section 12. Trustee Compensation. The Trustee shall be entitled to reasonable compensation l
for its services as agreed upon in writing with the Grantor.
A r
Section 13. Successor Trustee. Upon 90 days notice to the Grantor and NRC, the Trustee may resign; upon 90 days notice to the NRC and the Trustee, the Grantor may replace the l
Trustee; but such resignation or replacement shall not be effective until the Grantor has appointed a successor Trustee and this successor accepts the appointment. The successor Trustee shall have the same powers and duties as those conferred upon the Tmstee hereunder.
i Upon the successor Trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor Trustee the funds and properties then constituting the Fund. If for any reason the grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a coun of competent jurisdiction for the appointment of a s
successor Trustee or for instructions. The successor Trustee shall specify the date on which it i
assumes Administration of the trust in a writing sent to the Grantor, the NRC, and the present-Trustee by certified mail 10 days before such change becomes effective. Any expenses j
incurred by the Trustee as a result of any of the acts contemplated by this section shall be paid as provided in Section 9.
i Section 14. Instructions to the Trustee. All orders, requests, and instructions by the Grantor to the Trustee shall be in writing, signed by such persons as are signatories to this agreement i
or such other designees as the Grantor may designate in writing. The Trustee shall be fully l
protected in acting without inquiry in accordance with the Grantor's orders, requests, and instructions. If a duly constituted governmental authority (" Authority") having jurisdiction _
i issues orders, requests, or instructions to the Trustee these shall be in writing, signed by the Authority or its designee, and the Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the right to assume,in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor, or the Authority, i
hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and the instructions from the Grantor and/or the Authority, except as provided for herein.
Section 15. Amendment of Acreement. This Agreement may be amended by an instrument in writing executed by the Grantor and The Trustee. All amendments shall meet the relevant
{
regulatory requirements of the NRC.
i I
t Louisiana Energy Services A-6 November 12,1993 License Application Revision 8 Exhibit 1, Appendix A t
[
t Section 16. Irrevocability and Termination. Subject to the right of the parties to amend this Agreement as provided in Section 15, this trust shall be irrevocable and shall continue until terminated at the' written agreement of the Grantor, the Trustee, and any Authority, or by the l
Trustee and The Authority, if the Grantor ceases to exit. Upon tennination of the tmst, all remaining trust property, less final trust administration expenses, shall be delivered to the l
Grantor or its successor.
i Section 17. Immunity and Indemnification. The Trustee shall not incur personalliability of j
any nature in connection with any act or omission, made in good faith, in the administration
-l of this trust, or in carrying out any direction by the Grantor, or the Authority, issued in j
accordance with the Agreement. The Trustee shall be indemnified and saved harmless by the l
Grantor or from the trust fund, or both, from and against any personal liability to which the.
l Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its d.:fense in the event the Grantor fails to provide such defense.
l Section 18. This Agreement shall be administered, construed, and enforced accordingly to the i
laws of the State of [ insert name of State].
j Section 19. Interpretation and Severabilitv. As used in this Agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for j
3 each section of this Agreement shall not affect the interpretation or the legal efficacy of this l
Agreement. If any part of this agreement is invalid, it shall not affect the remaining l
provisions which will remain valid and enforceable.
]
l i
i i
i a
)
Louisiana Energy Services A-7 November 12,1993
- License Applica: ion Revision 8 Exhibit 1. Appendix A q
...- 1
i i
IN WITNESS WHEREOF the panies have caused this Agreement to be executed by the j
respective officers duly authorized and the incorporate seals to be hemunto affixed and
.l
\\
attested as of the date first writ'en above.
i ATTEST:
Louisiana Energy Services (Grantor)
[ Signature of representative of Grantor]
[ Title]
l
[ Title]
[ Seal]
i
[ Insert name of Trustee]
[ Signature of representative of Tmstee)
[ Title]
ATTEST-i
[ Title]
[ Seal].
't I
1 i
h a
i e
d l
i-I l
Louisiana Energy Services A-8 November 12,1993 License Application.
Revision 8 Exhibit I, Appendix A
EXHIBIT I APPENDIX B LOUISIANA ENERGY SERVICES CLAIBORNE ENRICHMENT CENTER FORM OF SURETY BOND
}
i 4
i i
i j
l l
i Louisiana Energy Services B-1 November 12,1993 License Application Revision 8 Exhibit I, Appendix B
4 i
PAYMENT SURETY BOND l
i i
Date bond executed:
Effective date:
To be effective upon Louisiana Energy Services taking possession of I
" source material," "special nuclear material," or " byproduct material" as l
defined in 10 CFR 40.4.
j i
Principal: Louisiana Energy Services Type of organization: Partnership Facility: Claiborne Enrichment Center i
Amount for decommissioning activity guaranteed by this bond:
i
[ declining balance with accumulation in trust fund]
i Surety (ies) [name(s) and business address (es)]
i Type of organization: [ insert " proprietorship," " joint venture," " partnership" or " corporation']
i State of incorporation:
(if applicable)
Surety's qualification in jurisdiction where licensed facility is located.
j Surety's bond number:
Total penal sum of bond: $[ declining balance]
Know all persons by these presents. That we, the Principal and. Surety (ies) hereto, are firmly bound to the [ external trust or standby trust] and to the U.S. Nuclear Regulatory Commission j
(hereinafter NRC), as their interests may appear, in the above penal sum for the payment of i
which we bind ourselves, our heirs, executors, administrators, successors, and assigns jointly and severally; provided that, where the Sureties are corporations acting as co-sureties, we, the i
Sureties, bind ourselves in such sum " jointly and severally" only for the purpose of allowing a joint action or actions against any or all of us and for all other purposes each Surety binds i
Louisiana Energy Services B-2 November 12,1993 t
License Application Revision 8 i
Exhibit I, Appendix B I,
1 itself, jointly and severally with the Principal, for the payment of such sum only as is set
)
fonh opposite the name of such Surety; but if no limit of liability is indicated, the limit of liability shall be the full amount of the penal sum.
WHEREAS, the U.S. Nuclear R.egulatory Commission, an agency of the U.S. Government, j
pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter 1 of the Code of Federal Regulations, Parts 40 and 70, applicable to the Principal, which require that a license holder l
or an applicant for a facility license provide financial assurance that funds will be available i
when needed for facility decommissioning; NOW, THEREFORE, the conditions of the obligation are such that if the Principal shall faithfully, before the beginning of decommissioning of each facility identified above, fund the I
external trust fund or standby trust satisfying NRC requirements for decommissioning funding, in the amount id ntified above (adjusted as described below) for the facility; j
Or, if the Principal shall fund the standby trust fund, or other external trust fund satisfying f
NRC requirements for decommissioning funding, in such amount after an order to begin facility decommissioning is issued by the NRC or U.S. District Coun or other coun. of
.j competent jurisdiction;
'f Or, if the Principal shall provide alternative financial assurance and obtain the written approval of the NRC of such assurance, within 30 days after the date a notice of cancellation from the Surety is received by both the Principal and the NRC; l
l Then this obligation shall be null and void as to the amount of alterncte decommissioning l
funding provided; o'.herwise it is to remain in full force and effect.
t The Surety shall become liable on this bond obligation only when the Principal has failed to l
fulfill the condidons described above. Upon notification by the NRC that the principal has j
failed to perform as guaranteed by this bond, the Surety shall place funds in the amount i
guaranteed for the facility into the external trust fund or standby trust fund as directed by the j
NRC.
I The liability of the Surety shall not be discharged by any payment or succession of payments hereunder, unless and until such payment or payments shall amount in the aggregate to the l
penal sum of the bond, but in no event shall the obligation of the Surety hereunder exceed the amount of said penal sum.
l The Surety may cancel the bond by sending notice of cancellation by cenified mail to the l
Principal and to the NRC provided, however, that cancellation shall not occur during the 90 i
days beginning on the date of receipt of the notice of cancellation by both the Principal and l
the NRC as evidenced by the retum receipts.
l Louisiana Energy Services B-3 November 12,1993 l
License Application Revision 8 -
Exhibit 1. Appendix B j
s
.I The Principal may terminate this bond by sending written notice to the NRC and to the j
Surety 90 days prior to the proposed date of termination, provide, however, that no such
.i notice shall become effective until the Surety receives written authorization for termination of l
the bond from the NRC.-
l The Principal and Surety hereby agree to adjust the penal sum of the bond yearly so that it guarantees a new amount, provided that the penal sum does not increase by more than 20 percent in any one year, and a decrease in the penal sum may take place only to the extent j
the Principal has accumulated an offsetting amount in a decommissioning trust fund.
i If any part of this agreement is invalid, it shall not affect the remaining provisions' which will i
remain valid and enforceable.
In Witness Thereof, the Principal and Surety have executed this financial guarantee bond and l
have affixed their seals on the date set forth above.
-l The persons whose signatures appear below hereby certify that they are authorized to execute j
this surety bond on behalf of the Principal and Surety (ies).
l Principal j
[ Signature (s)]
r i
[Name(s)]
l l
[ Title (s))
l I
[ Corporate seal]
Corporate Surety (ies) l
}
[Name and Address]
State of incorporation:
}
Liability Limit: S i
i l
i 1
l i
1 4
i Louisiana Energy Services B-4 November 12,1993 l
License Application Revision 8
)
s Exhibit 1, Appendix B i
J h
~-
[ Signature (s)]
[Name(s) and title (s))
[ Corporate seal]
For every co-surety, provide signature (s), corporate seal, and other information in the same i
manner as for Surety above.]
Bond premium: S l
Louisiana Energy Services B-5 November 12,1993 License Application Revision 8 Exhibit I, Appendix B
2 e
EXHIBIT I APPENDIX C i
9 LOUISIANA ENERGY SERVICES CLAIBORNE ENRICHMENT CENTER i
i i
FORM OF i
STANDBY TRUST AGREEMENT I
5 P
i t
t s
Louisiana Energy Services C-1 November 12,1993 l
License Application Revision 8 Exhibit I, Appendix C l
i
i
(
STANDBY TRUST AGREEhENT l
.i i
~t TRUST AGREEMENT, the Agreement entered into as of [date] by and between Louisiana
]
Energy Services, a partnership, herein referred to as the " Grantor," and [name and address of I
a national bank or other Trustee acceptable to the U.S. Nuclear Regulatory Commission (NRC)], the " Trustee." This Agreement shall become effective upon Louisiana Energy i
'I Services taking possession of " source material," "special nuclear material," or " byproduct material" as defined in 10 CFR 40.4.
WHEREAS, the NRC, an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 40 and 70. These regulations, applicable to the Grantor, require that a holder of, or an applicant for, a Part 40 j;
or 70 license provide assurance that funds will be available when needed for required decommissioning activities.
WHEREAS, the Grantor has elected to use a surety bond to provide financial assurance for the facilities identified herein; and WHEREAS, the Grantor has established an external trust fund in which it will make regular
-l contributions to accumulate funds for decommissioning, which trust fund balance will be used to offset the inidal surety amount. as described in that surety agreement; and l
WHEREAS, when payment is made under a surety bond this standby trust shall be used for f
the receipt of such payment: and l
WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee.
NOW, TFEREFORE, the Grantor and the Trustee agree as follows:
Section 1. Definitions. As used in this Agreement:
(a)
The term " Grantor" means the NRC licensee who enters into this Agreement and any successor or assigns of the Grantor.
4 Louisiana Energy Services C-2 November 12,1993 License Application Revision 8 Exhibit 1, Appendix C 1
1
..m.
(b)
The term " Trustee" means the trustee who enter into this' Agreement and any i
successor Trustee.
l Section 2. Cost of Decommissionine. This Agreement pertains to the costs of decommissioning the materials and activities identified in License Number finsert license j
numberl issued pursuant to ID CFR Parts 40 and 70, [to be] shown in an attachment hereto.
l 3
Section 3. Establishment of Fund the Grantor and the Trustee hereby establish a standby j
trust fund (the Fund) for the accumulation of funds and payment of decommissioning costs and expenses in accordance with the requirements of the NRC. The Grantor and the Trustee j
intend that no third pany have access to the Fund except as provided herein.
i Section 4. Pavments Constituting the Fund. Payments made to the Trustee for the Fund shall -
l consist of cash. securities, or other liquid assets acceptable to the Trustee. The fund is
(
established innially as consisting of the property, which is acceptable to the Trustee, [to be]
described in an attachment hereto. Such property and any other property subsequently j
transferred to the Trustee are referred to as the " Fund," together with all earnings and profits
(
thereon, less any payments or distributions made by the Trustee pursuant to this Agreement.
l The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall l
not be responsible nor shall it undertake any responsibility for the amount of, or adequacy of j
the Fund, nor any duty to collect from the Grantor, any payments necessary to discharge a.y l
liabilities of the Grantor established by the NRC.
l Section 5. Pavment for Reauired Activities Specified in the Plan. The Trustee shall make payments from the Fund to the Grantor upon presentation to the Trustee of the following:
1 a.
A cenificate duty executed by the Secretary of the Depositor attesting to the j
occurrence of the events, and in the form set forth in the attached Specimen j
Certificate, and b.
A cenificate attesting to the following conditions; i
(1) that decommissioning is proceeding pursuant to an NRC-approved plan.
(2) that the funds withdrawn will be expended for activities undertaken j
pursuant to that Plan, or will reimburse depositor for amounts already so l
expended,and
{
e (3) that the NRC has been given 30 days' prior notice of Louisiana Energy Services' intent to withdraw funds from the escrow fund.
No withdrawal from the fund can exceed 20 percent of the outstanding balance of the Fund unless NRC approval is attached.
Louisiana Energy Services C-3 November 12,1993 License Application Revision 8 Exhibit I, Appendix C
.l
- ~.
i In the event of the Grantor's default or inability to direct decommissioning activities, the j
Trustee shall make payments from the Fund as a duly designated successor to Grantor acceptable to the NRC shall direct, in writing, to provide for the payment of the costs of
)
required activities covered by this Agreement. The Trustee shall reimburse the Grantor or i
other persons as may be directed by the Grantor, such successor, or other duly constituted authority, from the Fund for expenditures for required acdvities. In addition, the Trustee shall l
refund to the Grantor such amounts as may remain in the Fund after required decommissioning is completed and evidence of NRC consent is provided. Upon refund, such l
funds shall no longer constitute part of the Fund as defined herein.
i Section 6. Trust Manacement. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of this section. In investing, reinvesting, exchanging, selling, and managing
[
the Fund, the Trustee shall discharge its duties with respect to the Fund solely in the interest of the purpose of the Fund and with the care, skill, prudence, and diligence under the 3
l circumstances then prevailing which persons of prudence, acting in a like capacity and l
familiar with such matters, would use in the conduct of an enterprise of a like character and j
which like aims; except that:
(a)
Securities or other obligations of the Grantor, or any other owner of operator of the facilities, or any of their affiliates as defined in the Investment Company Act of 1940, as amended (15 U.S.C. 90a-2(a)), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State government; i
(b)
The Trustee is authorized to invest the Fund in time or demand deposits of the Trustee, to the extent insured by an agency of the Federal Government, and in i
obligations of the Federal Government such as GNMA, FNMA, and FHLM l
bonds and certificates or State and Municipal bonds rated BBB or higher by Standard and Poors or Baa or higher by Moody's Investment Services; and I
(c)
For a reasonable time, not to exceed 10 days, the Trustee is authorized to hold uninvested cash, awaiting investment or distribution, without liability for the l
payment of interest thereon.
j Section 7. Commincline and Investment. The Trustee is expressly authorized in its discretion-l i
(a)
To transfer from time to time any or all of the assets of the fund to any
^
common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled with the assets of other trust participating therein; and i
1 Louisiana Energy Services C-4 November 12,1993 i
License Application Revision 8 I
Exhibit I, Appendix C l
(b)
To purchase shares in any investment company registered under the investment '
Company Act of 1940 (15 U.S.C. 80a-2 et seq.),.ncluding one that may be i
created, managed, underwritten, or to which invesuaent advice is rendered, or j
the shares of which are sold by the Trustee. The Trustee may vote such shares
-i in its discretion.
i Section 8. Ext 3ress Powers of Trustee. Without in any way limiting the powers and j
discretion conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:
1 (a)
To sell, exchange, convey, transfer, or otherwise dispose of any propeny held by it, by public or private sale, as necessary to allow duly authorized i
withdrawals at the joint request of the Grantor and the NRC or to reinvest in j
securities at the direction of the Grantor; l
(b)
To make execute, acknowledge, and deliver any and all documents of transfer and conveyance a. i any and all other instruments that may be necessary or appropriate to carry out the powers herein granted; j
(c)
To register any securities held in the Fund in its own name, or in the name of a j
nominee, and to hold any security in bearer form or in book entry, or to combine cenificates representing such securities with certificates of the same issue held by the Trusted in other fiduciary capacities to reinvest interes l
payments and funds from matured and redeemed instruments, to file proper forms concerning securities held in the Fund in a timely fashion with appropriate government agencies, or to deposit or arrange for the deposit of such securities in a qualified central depository even though, when so deposited, such securities may be merged and held in bulk in th.: name of the -
l nominee or such depository with other securities deposited therein' by another person, or to deposit or arrange for the deposit of any securities issued by the U.S. Government, or any agency or instmmentality thereof, with a Federal Reserve bank, but the books and records of the Trustee shall at all times show
{
that all such securities are part of the Fund; l
r (d)
To deposit any cash in the Fund in interest-bearing accounts maintained or _
i saving, certificates issued by the Trustee, in its separate corporate capacity, or in any other banking institution affiliated with the Trustee, to the extent insured by an agency of the Federal Government; and (e)
To compromise or otherwise adjust all claims in favor of or against the Fund.
Louisiana Energy Services C-5 November 12,1993 License Application Revision 8 l
Exhibit I, Appendix C k
--e e
. ~.
4 Section 9. Taxes and Expenses. All taxes of any kind that my '.>e assessed.or levied against
.j or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund. All other expenses incurred by the Trustee in connection with the l
Administration of this Trust, including fees for legal services rendered to the Trustee, the i
compensation of the Trustee to the extent not paid directly by the grantor, and all other proper charges and disbursements of the Trustee shall be paid from the fund.
[
Section 10. Annual Valuation. After paytrent has been made into this standby trust fund, the Trustee shall annually, at least 30 days before the anniversary date of receipt of payment into '
the standby trust fund, furnish to the Grantor and to the NRC a statement confirming the value of the Trust. Any security in the fund shall be valued at market value as of no more 1
than 60 days before the anniversary date of the establistunent of the Fund. The failure of the i
Grantor to object in writing to the Trustee within 90 days after the statement has been furnished to the Grantor and the NRC, or State agency, shall constitute a conclusively binding i
assent by the Grantor, barring the grantor from asserting any claim or liability against the j
Trustee with respect to the matters disclosed in the statement.
Section 11. Advice of Counsel. The Trustee msy frem time to time consult with counsel with respect to any questions rising as to the constmetion of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent permitted by law, in acting on the advice of counsel.
Section 12. Trustee Compensation. The Trustee shall be entitled to reasonable compensation
(
for its services as agreed upon the writing with the grantor.
Section 13. Successor Trustee. Upon 90 days notice to the Grantor and NRC the Trustee may resign; upon 90 days notice to the NRC and the Trustee, the Grantor may replace the j
Trustee; but such resignation or replacemem shall not be effective until the grantor has appointed a successor Trustee and this successor accepts the appointment. The successor Trust shall have the same powers and duties as those conferred upon the Trustee hereunder.
Upon the successor Trustee's acceptance of the cppointment, the Trustee shall assign, transfer, r
f and pay over to the successor trustee the funds and propenies then constituting the Fund. If for any reason the Grantor cannot or does not act in the event of the resignation of the
[
Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a
~
successor Trustee or for instructions. The successor Trustee shall specify the date on which it i
assumes administration of the trust in a writing sent to the Grantor, the NRC or State agency, j
3 and the present Trustee by cenified mail 10 days before such change becomes effective. Any
[
expenses incurred by the Trustee as a result of any of the acts contemplated by this section shall be paid as provided in Section 9.
t
)
j Louisiana Energy Services C-6 November 12.1993 License Application Revision 8 i
Exhibit 1, Appendix C j
l i
i i
Section 14. Instmctions to the Trustee. All orders, requests, and instructions by the Grantor l
/
to the Trustee shall be in writing, signed by such persons as are signatories to this agreement
~ :
or such other designees as the Grantor may designate in writing. The Tmstee shall be fully l
protected in acting without inquiry in accordance with the Grantor's orders, requests, and i
instruction. If a duly constituted governmem - uthority (" Authority") having jurisdiction l
stee, these shall be in writing, signed by the issues orders, requests, or instructions t Authority, or its designee, and the Trustee sd act and shall be fully protected in acting in accordance with such orders, requests and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor, or the Authority, i
hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, l
requests, and instruction from the Grantor and/or the Authority, except as provided for herein.
Section 15. Amendment of Acreement. The Agreement may be amended by an instmment t
in writing executed by the Grantor, the Trustee and the NRC, or State agency, or by the Trustee and the NRC or State Agency, if the Grantor ceases to exist.
q Section 16. Irrevocability and Termination. Subject to the right of the parties to amend this f
Agreement as provided in Section 15, this tmst shall be irrevocable and shall continue until j
terminated at the written agreement of the Grantor, the Trustee, and any Authority or by the Trustee and the Authority if the Grantor ceases to exist. Upon termination of the trust, all 1
remaining trust property, less fir al trust administration expenses, shall be delivered to the l
Grantor or its successor.
i Section 17. Irn aunity and Indemnification. The Trustee shall not incur personal liability of l
m any nature in connection with any act or omission, made in good faith, in the administration j
of this trust, or in carrying out any directions by the Grantor, or the Authority, issued in i
accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the j
j Grantor or from the trust fund, or both, from and against and personal liability to which the l
Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonable incurred in its defense in the event the Grantor fails to provide such defense.
I Section 18. This Agreement shall be administered, construed, and enforced according to the l
l laws of the State of [ insert name of State].
1 Section 19. Interpretation and Severability. As used in this Agreement, words in the singular i
include the plural and words in the plural include the singular. The descriptive headings for each section of this Agreement shall not affect the interpretation or the legal efficacy of this j
Agreement. If any part of this agreement is invslid,it shall not affect the remaining j
l provisions which will remain valid and enforceable.
l Louisiana Energy Services C-7 November 12,1993 License Application Revision 8 Exhibit I, Appendix C I
r
- -+
b-w4-w u%w-m -a p
,m
,--r,-g--
._,-.,-yy w
w-
7
~_
-t i
IN WITNESS WHEREOF the parties have caused this Agreement to be executed by the respective officers duly authorized and the incorporate seals to be hereunto affixed and attested as of the date first written above.
ATTEST:
[ Insert name of licensee (Grantor)]
[ Signature of representative of Grantor]
[ Title]
Li
[ Title]
[ Seal]
[ Insert name of Trustee]
[ Signature of representative of Trustee]
[ Title]
l ATTEST:
i
[ Title]
l
[ Seal] '
a I
1
-l k
e r
i r
i r
j k
Louisiana Energy Services C-8 November 12,1993 1
License Application Revision 8 r'
Exhibit I, Appendix C
i i
1 ACKNOWLEDGEMENT STATE OF To Wit:
CITY OF i
On this day of
, before me a notary public in and for the city j
and State aforesaid, personally appeared
, and she/he did depose and say that she/he is the [ title), of [
], national banking association, Trustee, which executed the above instrument, that she/he knows the seal of s:dd association; that the seal i
affixed to such instrument is such corporate seal; that it was so affixed by order of the l
association; and that she/he signed her/his name thereto by like order.
t.
b
[ Signature of notary public]
l My Commission Expires:
j
[ Date ]
I t
i louisiana Energy Services C-9 November 12,1993 License Application Revision 8 Exhibit I, Appendix C J
l,